The Advantages of Hiring a Property Management Company to take care of your Residential Property Needs
One of a landlordsâ€™ biggest decisions is whether or not to use the services of a management company. Many are happy to manage things on their own or with the assistance of a site manager. But for larger or block properties it often makes sense to hire a professional management company.
Â There are a number of reasons why it may be desirable or necessary to use block management in the northwest and other parts of the country, some of which we outline below.
Â Functions of a property management company
Â A management company will handle directly the prospects and tenants so that you neednâ€™t worry about time-consuming issues such as collecting rents, leases, maintenance, running repairs, legal obligations and evictions. Also, as a professional management company will operate as a contractor there is none of the hassle typically involved in becoming an employer.
Â Numbers and distance of rental units
Â If you have lots of residential properties or rental units a management company will be invaluable, and even more so if you live a long way from the property. Some issues simply cannot be dealt with if youâ€™re not physically in close proximity, and itâ€™s at this point that you need a local, handâ€™s-on manager to take care of things on your behalf.
Â Hands-on management issues
Â Many landlords relish the challenges involved in finding their own tenants and dealing with the issues faced on a daily basis. Others are not so hands-on and prefer to keep a distance, treating the property exclusively as an investment.
Â Free from employer obligations
Donâ€™t think taking on a manager personally means you forgo any responsibilities. Hiring employees or a resident manager automatically turns you into an employer. This means that youâ€™ll be faced with a multitude of considerations and responsibilities, such as handling a payroll and addressing legal requirements.
Â A property management company, in contrast, works as an independent contractor and relieves you of all that hassle.
Â Management of a growing business
Â A rapidly expanding property portfolio usually entails a proliferation of management tasks. These can soon become overwhelming and too much for any one individual to cope with, especially where the properties are spread across a wide geographical area. Under these circumstances hiring a management company will become a necessity.
Â Limited time
Â Even for landlords who like getting their hands (sometimes quite literally) dirty with the likes of maintenance, time may be limited. This is especially so if their landlord duties are in addition to a regular day job. A management company would equally be worth considering for a landlord who prefers to concentrate on business growth and raising finance for renovation work, as they can take on the task of assigning third party contractors to complete maintenance and renovation on your behalf.
Â Affordable housing programs
Â If the property participates in an affordable housing initiative matters will not be as straightforward as they would be for regular private units. The landlord under such schemes is the recipient of financial assistance such as tax credits, low-interest loans and grants. The purpose is to free up housing for low-income tenants.
In order to continue getting such assistance the landlord has to comply with certain rules, which can be rather complex. As there is so much financial incentive involved, and the penalties of getting things wrong potentially very serious indeed, hiring a management company to take care of everything can make good sense.